CNN Money
TARP bailout now close to breaking even
The big banks had already paid back their loans, and last week, the Treasury Department sold its remaining stake in AIG (AIG, Fortune 500). On Wednesday, General Motors (GM, Fortune 500) said it was buying back 200 million shares from the government. Bailed-out companies had also paid nearly $43 billion in dividends and interest over the past four years.
That leaves a loss of just under $14 billion, including $6 billion for programs to prevent foreclosure that were never meant to be paid back.
The shares of banks and automakers that Treasury still owns is likely to fetch close to that much, if not more.
Blowback
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But did the banks get Federal Reserve loans to pay back the TRAP loans? I want to see independet accounting.
Oil Can on December 20, 2012 at 1:46 PM
If TARP broke even, why does everyone comparing Bush debt to Obama debt count most or all of TARP against Bush? It didn’t become debt until Obama spent the repayments rather than returning them to the Treasury as he had promised to do in Campaign 2008. Absolutely all the TARP “debt” belongs to Obama.
munseym on December 20, 2012 at 1:48 PM
I heard it called yesterday that they’d net out the GM losses with the Banks gains and say “Hooray for Big Government!”
Sickening.
Ask the secured creditors in the GM BK what they think of the GM bailout, and then get back to me and tell me how successful it was.
CycloneCDB on December 20, 2012 at 1:51 PM
“See? We should do this again in the future should the need arise.”
/Washington
Bitter Clinger on December 20, 2012 at 1:52 PM
BOOOOOOSH
Good Lt on December 20, 2012 at 1:55 PM
I am so happy those GM union goons received preferential treatment over shareholders and will continue to receive their retirement benefits thanks to Obama’s bailout. See…it’s all good!
trs on December 20, 2012 at 2:10 PM
Doesn’t sound like “breaking even” to me.
Rebar on December 20, 2012 at 2:11 PM
Yeah, breaking even with funny-money.
Defenestratus on December 20, 2012 at 2:16 PM
If you include all the bailouts, not just TARP then we are still deep in the hole. Remember Freddie and Fannie?
Wigglesworth on December 20, 2012 at 3:17 PM